Formulas and Functions

Chapter 13 Additional Examples and Topics 347
salvage
Assets often have value remaining at the end of the depreciable life or the expected useful life. This is
the salvage value.
salvage is specied as a number, usually formatted as currency. salvage can be 0, but cannot be
negative.
Assume that you purchase a new digital photocopy machine for your oce. The purchase price of
the photocopy machine was $2,625 with tax. The vendor charged $100 to deliver and set it up. The
photocopy machine is expected to be used for 4 years, at which time it is expected to have a resale
value of $400. salvage is $400.
start-per
Certain functions return principal or interest for a series of specied payments. start-per is used to
indicate the rst payment to be included in the value returned. See also the discussion of end-per.
start-per is specied as a number and must be greater than 0.
Assume that you are purchasing a home. The mortgage broker oers you a loan with an initial
balance of $200,000, a term of 10 years, an annual interest rate of 6.0%, xed monthly payments of
$1070.45, and a balance to be renanced at maturity of $100,000. If you wished to know the total
amount of interest paid in the third year, start-per would be 25 and end-per would be 36.
when-due
Payments can be generalized to occur at the beginning or end of a period. when-due is used to
indicate whether a payment occurs at the beginning or end of a period.
when-due is a modal argument. It can be the number 0 or 1.
 A value of 0 species that the payment is treated as being received or made at the end of each
period. 0 is the default value.
 A value of 1 species that the payment is treated as being received or made at the beginning of
each period.
Assume that you are purchasing a home. The mortgage broker oers you a loan with an initial
balance of $200,000, a term of 10 years, an annual interest rate of 6.0%, xed monthly payments,
and a balance to be renanced at maturity of $100,000. when-due would be 0 (the default) since
payments are made at the end of each month. Or assume you own an apartment that you rent and
that you require the tenant to pay rent on the rst of each month. when-due would be 1, since this
payment is being made by the tenant at the beginning of the monthly period.